Documente Academic
Documente Profesional
Documente Cultură
S. O. Ndukwe
•Manager, Planning Budget & IT Department,
•NNPC Coordinator, West African Gas Pipeline Project
Approach
• The Nigerian Gas Industry
– The Overview & Historical Development
• Gas Utilization
1
The Nigerian gas
Industry
- Structure
- Facts
- Issues
2
National aspirations:
2 Key Value Drivers for Nigerian Gas
1
Maximising the multiplier effect of
gas in domestic economy
Growing the
Nigerian Economy
with Gas 2
Optimizing Nigeria’s share and
competitiveness in high value
export markets
3
Structure of the Nigerian gas chain
NGC SNG
GASLINK
SPDC FALCON
& GASLAND
CNL
16%
29%
Nations flared gas constitutes 20% of world’s total flared gas , enough to supply gas for
power generation and other utilizing projects to the entire sub-Sahara Africa in a year.
4
Gas Off-take by Sector in 2006
1%
4% 6%
40% 16%
82%
The Power Sector Gas Off take constitutes over 80% of total gas consumption
5
Planned Efforts at Gas Utilization
New LNG Programmes
NLNG Train 6
New promoters
- Brass LNG
- OK LNG
- Exxon Mobil FLNG
- Nwadoro LNG
Trans - Sahara - To Algeria & Europe
Trans Nigerian Pipeline System
Power generation - Abuja IPP
- Others - State govt. pland IPP's e.t.c
Others - Methanol, Gas to Olefins & CNG
Note Items in red are for exports
Gas Supply
Infrastructure
(Domestic)
6
Summary of Existing NGC Facilities
• 14 Compressor Stations
12 stations are leased out to SPDC
¾ 4 stations: Eriemu, Utorogu, Afiesere, & Sapele have
been rehabilitated and are operating;
¾ Remainders are being taken over for rehabilitated.
A Aba
Eleme
O
Imo River
R
Obigbo North
F Onne
NAFCON
Alakiri
LEGEND N
Afam
Pipelines : Customers :
Existing N PHCN
On - going
A Aba Industries (IGIL)
Planned
O RSEB Gas Turbine, Eleme ALSCON
Gas Sources : R PHRC (Refinery) Ikot Abasi
NAG Gas Plant F NAFCON Fertilizer Plant
AG Compressor Station ALSCON Plant, Ikot Abasi
7
Western Gas Transmission System
To Abuja/Kaduna
Ajaokuta
Ewekoro ASCL
W Shagamu
W Okpella
Cement
TO ECOWAS
Oben
N
L
Ikeja Egbin Sapele
N
LEGEND Sapele
Makaraba Eriemu
Pipelines : Customers : Jones Creek
Existing S N
N PHCN
On-going Escravous
Planned W WAPCO
Beach
L Lagos Industry Odidi
Gas source : WRPC Ughelli East
S SPDC Estates
NAG Gas Plant
DSC
AG Compressor Station Utorogu
Aladja
**Abuja
Abuja*
NIG ER
NEPA
Transm ission Abuja
G rid
O YO KW AR A *Geregu
G eregu* N ASS ARAW A
Be nu e
*Papalanto
Papalanto* EKITI KO G I
O SUN
O G UN Omotosho*
O kitipupa*
O NDO EDO
Niger
ENUG U
L AG O S
Lagos NEPA EG BIN NEP A SAPELE ANAM BRA
NEPA DELTA IV
Existing
W Pipeline
estern Pipeline System Systems Ibom P ow er**
Alaoji
Existing
W PHCNSystem
estern Pipeline PowerAdditions
Plants IM O IA
W arri AB
Proposed
Eastern Pipeline
Pipeline System Loop
System
DEL TA Aba
Proposed
Existing New
NEPA Pipeline
Power Plants System RIVERS
*Under Construction
New Power Plants BAYELSA Port H arcourt
**Proposed
* Proposed
** Under Construction NEP A AF AM
8
NGC pursuing an Integrated Network
Objective
• Enhance flexibility in gas flowing operations
• Reduction of unit cost of operation
• Enables proper facility maintenance while ensuring minimum
interruption
The Trans
NGC’s Dream of Pipeline
Nigeria pipeline network
System
SOKOTO
YOBE
KEBBI KANO
Birni Kebbi KATSINA
BORNO
KADUNA BAUCHI
NIGER
KW ARA GOMBE ADAMAWA
PLATEAU
OYO ABUJA
Osogbo Geregu
TARABA
OSUN ONDO
KOGI
EDO
BENUE
ANAMBRA
LAGOS
9
Opportunity for
Gas Utilisation
e r ia
na
bia
eria
on
Cam gal
B en
Moz roun
K en
Gh a
expected by 2010
Ga b
Zam
A lg
iqu
e
L
N ig
fr ic
Se n
e
a mb
th A
10
POTENTIAL…
FERTILIZER AND CEMENT SECTORS
Dangote
•Consumption per Capita for Fertilizer cement and
other private
•Cote D’ Ivore - 21kg/hr sector
•Malawi- 22kg/hr initiative to
the rescue
•Malaysia - 150kg/hr
•Nigeria- 13kg/hr
•CONSUMPTION TO INCREASE BY 7MM MT IN THE NEXT FIVE
YEARS.
•NIGERIA- LARGEST IMPORTER OF CEMENT, TOTAL DEMAND 6
MILLION METRIC TON/ANNUM, 50% IMPORTED.
•NIGERIA NEEDS NEW CEMENT AND FERTILIZER PLANTS
POTENTIAL…
DISTRIBUTION / TRANSPORTATION
GAS DISTRIBUTION:
• Greater Lagos,- GASLINK LTD
• Otta & Agbara, - SHELL NIGERIA GAS
• SPDC AND NNPC ESTATES WARRI- NGC
•Ekpe-Lekki- GASLAND LTD
•Ukorodu - FALCON NIG LTD
•Aba Distribution -SPDC
•TRANSPORTATION - CNG PROPAGATION.
•New commercial CNG stations being planned in 2007
•In country CNG conversion technology resident in NGC
11
EXPORT MARKET POTENTIALS OF NIGERIA’
NIGERIA’S GAS
NGL/LNG/GTL
•Chevron GTL
•NLNG T1 –T6
•Brass LNG
•Olokola LNG
•Kwandoro Floating LNG
EXPORT PIPELINES
Committed
gas up to
4Bscf/d
Possible
Export
Commitments
– mostly LNG
Existing &
Firm Export
Commitments
12
Gas Demand Growth in Nigeria
Domestic Sector
22 Power plants
6 Fertilizer plants
3 Methanol plants
3 GTL plants
Export Sector
I Existing LNG plant
2 Planned new plants
There is a significant growth projected for the export market. This was largely anticipated. Of
significance however, is the unprecedented and unanticipated growth in the domestic sector.
Underpinning both markets is a robust mix of opportunities which provide a platform for
economic growth
Export
Pipelines
13
West African Gas Pipeline Project
14
Gas Demand Overview
Demand Forecast – Domestic Demand Relative to
Export
15
Impediments
Limited pipeline
Trans Infrastructure……
Nigeria Pipeline System
NGC has 1200Km of pipelines that limits its activities to the west and east of the Niger
ELP the major trunk pipeline capacity is almost fully committed
Need to expand the system by building trunk pipelines as part of National infrastructure
SOKOTO
YOBE
KEBBI KANO
Birni Kebbi KATSINA
BORNO
KADUNA BAUCHI
NIGER
KW ARA GOMBE ADAMAWA
PLATEAU
OYO ABUJA
Osogbo Geregu
TARABA
OSUN ONDO
KOGI
EDO
BENUE
ANAMBRA
LAGOS
16
The Western pipeline is the backbone
To Abuja/Kaduna
Ewekoro Geregu
W Ajaokuta
ASCL
W Shagamu Okpella
Papalanto Cement
Omotosho
TO ECOWAS
Agbara/Ota
Oben
Ikeja N
L
Egbin Sapele
N
Sapele
Makaraba Eriemu
Jones Creek
LEGEND S N
Pipelines : Escravous
Existing Customers : Beach
Odidi
On-going N PHCN WRPC Ughelli East
Planned W WAPCO
Gas source : L Lagos Industry DSC
WRPC Aladja Utorogu
NAG Gas Plant S SPDC Estates
AG Compressor Station Delta
Steel
GASLINK
• Bundled prices that are
highly subsidized
SNG
• Subsidies borne by NGC and
0 100 200 300 400 500
producers
NEPA to pay N70/mscf in 2006
=N=128/$
17
Pricing issues
• Current prices are too low to support constant
investment flow
– Prices to strategic sectors to remain regulated with in-built
concessions to support the power and heavy government industrial
concerns which together consume over 90% of domestic sales
– Power sector currently pays $0.25/mscf as compared to between $3-
$4/mscf by commercial private companies
– While the power sector dominates the domestic gas sector in terms of
volume consumption, it distorts investment flow due to its ridiculously
low gas price
18
Gas Sector
Reforms
Pricing Reforms
NNPC is pursuing a reform of the Gas pricing
framework
– Strategic sectors (power, fertilizer etc.) to be give concessionary
price
– Non-strategic sectors to be driven by commercial principles
– Transitional prices need to ramp up prices in the non-strategic
sectors to commercial levels
Status:
•Pricing structure Regulation being finalised
•The New policy will cure the current problem in gas supply shortfall
19
Fiscal Reforms
New Fiscal law being pursued
• Provide equitable share of economic rent to FGN
• Eliminate FGN subsidy of existing project-specific regimes
– they will not be renewed
• Level the playing field for all investors
• Provide incentives for investment in local infrastructure
• Use gas to drive the economy
• Improve revenue stream from gas to a level comparable to
that of oil
• Progress:
– New fiscal Bill before the Legislature to be passed into Law before
May 2007
Progress:
The Downstream Gas Bill is being discussed at the
National Assembly- Public hearing just concluded
20
Unbundling of NGC
• NGC to be Unbundled into; :
• Nigerian Gas Marketing Company (NGMC)
• Nigerian Gas Transportation Company (NGTC)
21
The Downstream Gas Bill
Summary
• Nigeria is regarded as a Gas Province with some oil
• Govt. has identified the barriers to gas development, and has devised
strategies to overcome them- the policy and Gas Bill
22
NGC powering the nations
economy through gas…….
Thank you
23